North Carolina § 18B-1105 - Authorization of distillery permit.

§ 18B-1105. Authorization of distillery permit.

The holder of a distillery permit may do any of the following: Manufacture, purchase, import, possess and transport ingredients and equipment used in the distillation of spirituous liquor. Sell, deliver and ship spirituous liquor in closed containers at wholesale to exporters and local boards within the State, and, subject to the laws of other jurisdictions, at wholesale or retail to private or public agencies or establishments of other states or nations. Transport into or out of the distillery the maximum amount of liquor allowed under federal law, if the transportation is related to the distilling process. Sell spirituous liquor distilled at the distillery in closed containers to visitors who tour the distillery for consumption off the premises. Sales under this subdivision are allowed only in a county where the establishment of a county or municipal ABC store has been approved pursuant to G.S. 18B-602(g) and are subject to the time and day restrictions in G.S. 18B-802. Spirituous liquor sold under this subdivision shall (i) be listed as a code item for sale in the State, (ii) be sold at the price set by the Commission for the code item pursuant to G.S. 18B-804(b), and (iii) have affixed to its bottle any labeling requirements set by law. In an area where the sale of mixed beverages is authorized by law, sell mixed beverages for consumption on the premises. If a distillery elects to sell mixed beverages containing spirituous liquor other than that produced at the distillery, the distillery shall obtain a mixed beverages permit pursuant to G.S. 18B-1001. Conduct consumer tastings in accordance with G.S. 18B-1114.7. Sell malt beverages, unfortified wine, and fortified wine, for consumption on the premises upon obtaining the appropriate permit under G.S. 18B-1001. Distilleries for Fuel Alcohol. - Any person in possession of a Federal Operating Permit pursuant to Title 27, Code of Federal Regulations, Part 19 (April 1, 2010 Edition), shall obtain a fuel alcohol permit before manufacturing any alcohol. The permit shall entitle the permittee to perform only those acts allowed by the Federal Operating Permit, and all conditions of the Federal Operating Permit shall apply to the State permit. Tax Compliance. - By October 1 of each year, the Commission shall confirm the holder of a distillery permit is in compliance with G.S. 18B-900(a)(8). The provisions of G.S. 18B-900(f) apply to the confirmation required under this subsection, except that the Commission may suspend a person's distillery permit until the Commission receives notice from the Department of Revenue that the person is in compliance. History (1979, 2nd Sess., c. 1329, s. 1; 1981, c. 412, s. 2; 1989, c. 800, s. 5; 2012-201, s. 10; 2015-98, s. 4(a); 2015-262, s. 3(a); 2017-87, ss. 1(a), 16(b); 2019-182, ss. 1(b), 2, 4(a).) Editor's Note. - Session Laws 2015-98, s. 4(h), provides: "No later than October 1, 2015, the ABC Commission shall establish and adopt temporary rules to implement the provisions of this section." Session Laws 2015-98, s. 4(i), made the amendment to this section by Session Laws 2015-98, s. 4(a), effective upon adoption of rules pursuant to Session Laws 2015-98, s. 4(h). The Revisor is informed that rules were adopted. Session Laws 2017-87, s. 1(d), provides: "The Alcoholic Beverage Control Commission shall adopt temporary rules to amend its rules consistent with this section." Session Laws 2017-87, s. 19(a), (b), provides: "(a) Except as otherwise provided, the Alcoholic Beverage Control (ABC) Commission shall adopt temporary rules to implement the provisions of this act. Temporary rules adopted in accordance with this section shall remain in effect until permanent rules that replace the temporary rules become effective. "(b) Any rule or policy adopted by the ABC Commission that does not comply with the provisions of this act shall be null, void, and without effect." Session Laws 2019-182, s. 4(c), made the amendment to subdivision (a)(4) by Session Laws 2019-182, s. 4(a), effective September 1, 2019, and applicable to sales made on or after that date. Session Laws 2019-182, s. 28, is a severability clause. Effect of Amendments. - Session Laws 2012-201, s. 10, effective August 8, substituted "Part 19 (April 1, 2010 Edition)," for "Part 201.64 through 201.65 or Part 201.131 through 201.138" in subsection (b). Session Laws 2015-98, s. 4(a), added "do any of the following" at the end of the introductory language, added subdivision (a)(4), and made minor punctuation changes. For effective date, see editor's note. Session Laws 2015-262, s. 3(a), effective September 30, 2015, deleted "if the distillery manufactures less than 100,000 proof gallons per year" at the end of the first sentence of subdivision (a)(4). Session Laws 2017-87, s. 1(a), effective July 1, 2017, substituted "five bottles of spirituous liquor" for "one bottle of spirituous liquor" in subdivision (a)(4) and added subdivision (a)(5). Session Laws 2017-87, s. 16(b), effective June 30, 2017, added subsection (c). Session Laws 2019-182, ss. 1(b), 2, effective September 1, 2019, added subdivisions (a)(4a) and (a)(6). Session Laws 2019-182, s. 4(a), effective September 1, 2019, in subdivision (a)(4), rewrote the third sentence, which formerly read: "Spirituous liquor sold under this subdivision shall (i) be listed as a code item for sale in the State, (ii) be sold at the price set by the Commission for the code item pursuant to G.S. 18B-804(b), and (iii) have affixed to its bottle a sticker that bears the words 'North Carolina Distillery Tour Commemorative Spirit' in addition to any other labeling requirements set by law" and deleted the last three sentences. For effective date and applicability, see editor's note.